JAMB Economics questions

378 questions with answers and explanations. Tap an option to check yourself.

1. Question 201· National income· JAMB

   With a multiplier of 4, an increase in investment of ₦10 billion raises national income by

   • A₦40 billion
   • B₦10 billion
   • C₦2.5 billion
   • D₦14 billion

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   Explanation and discussion

2. Question 202· National income· JAMB

   If the marginal propensity to save is 0.2, the multiplier is

   • A0.2
   • B5
   • C2
   • D8

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   Explanation and discussion

3. Question 203· National income· JAMB

   A country has a national income of ₦200 billion and a population of 40 million. Find its per capita income.

   • A₦500
   • B₦8,000
   • C₦5,000
   • D₦50,000

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4. Question 204· National income· JAMB

   If the marginal propensity to consume is 0.8, the value of the investment multiplier is

   • A0.2
   • B5
   • C1.25
   • D8

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5. Question 205· National income· JAMB

   Using the expenditure method, national income is measured as

   • Ataxes minus subsidies
   • Bwages + rent + interest + profit only
   • Cthe value of output only
   • DC + I + G + (X − M)

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6. Question 206· National income· JAMB

   Injections into the circular flow include

   • Adepreciation
   • Bsavings, taxes and imports
   • Cconsumption only
   • Dinvestment, government spending and exports

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7. Question 207· National income· JAMB

   National income can be measured by the output, income and

   • Atax method
   • Bcensus method
   • Cexpenditure methods
   • Dbalance method

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8. Question 208· National income· JAMB

   Gross Domestic Product (GDP) is the total value of

   • Agovernment spending
   • Ball goods imported in a year
   • Cfinal goods and services produced within a country in a given period
   • Dmoney in circulation

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9. Question 209· National income· JAMB

   Pensions and other transfer payments are excluded from national income because they

   • Aare too small
   • Bare not payments for current production
   • Care paid by government
   • Dare not taxed

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10. Question 210· National income· JAMB

    Gross National Product equals GDP plus

    • Asubsidies
    • Bdepreciation
    • Cindirect taxes
    • Dnet factor income from abroad

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11. Question 211· National income· JAMB

    Double counting in national income accounting is avoided by

    • Acounting only final goods or the value added at each stage
    • Bcounting all intermediate goods
    • Cexcluding services
    • Dcounting only exports

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12. Question 212· National income· JAMB

    The circular flow of income shows

    • Aonly exports
    • Bonly government spending
    • Cthe flow of money and goods between households and firms
    • Dbarter trade

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13. Question 213· National income· JAMB

    Double counting in national income is avoided by

    • Acounting intermediate goods
    • Bcounting only final goods or value added
    • Ccounting all sales
    • Dignoring services

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14. Question 214· National income· JAMB

    Net National Product (NNP) is equal to

    • AGDP plus taxes
    • BGNP plus depreciation
    • CGDP minus imports
    • DGNP minus depreciation

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15. Question 215· Natural resources and the Nigerian economy· JAMB

    Natural resources are

    • Aman-made machines
    • Bgifts of nature used in production
    • Chuman skills
    • Dmoney

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16. Question 216· Natural resources and the Nigerian economy· JAMB

    Bitumen deposits in Nigeria are found mainly in

    • AOndo State
    • BKano State
    • CBorno State
    • DSokoto State

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    Explanation and discussion

17. Question 217· Natural resources and the Nigerian economy· JAMB

    Nigeria is a member of OPEC, which it joined in

    • A1980
    • B1960
    • C1999
    • D1971

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    Explanation and discussion

18. Question 218· Natural resources and the Nigerian economy· JAMB

    The Petroleum Industry Act was signed in

    • A2010
    • B1999
    • C2021
    • D1980

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    Explanation and discussion

19. Question 219· Natural resources and the Nigerian economy· JAMB

    The Petroleum Industry Act signed in 2021 aims mainly to

    • Aban oil exports
    • Breform the governance and regulation of Nigeria's oil and gas industry
    • Cnationalise all oil companies
    • Dfix the price of petrol forever

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20. Question 220· Natural resources and the Nigerian economy· JAMB

    The downstream sector of the petroleum industry covers

    • Aexploration for oil
    • Brefining and marketing of petroleum products
    • Cdrilling oil wells
    • Dseismic surveys

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    Explanation and discussion